Today I began trying out something that was suggested to me by Duane. He had noticed my focus was all over the place so he suggested some “blinders” and hence I focused on the tape of only 3 stocks today, ATU, KR, and SFD. I will admit it was boring for me, and tedious, and I felt as if I was missing big things. All of these are issues that need to be addressed. Rashness of action is a sure fire way to lose money in these markets, and trading is for minting coin, not entertainment (although we are fortunate in that it can provide both.) I also took some hideous losses early in the morning, but spent the rest of the day battling back to just under 0. Normally I would have been pissed, instead I will try to harness the state of mind that allowed me to grind back and try to apply that from the open tomorrow.
In any case, that is my rant on trading today. Here are the trades I would like to highlight.
This was a bad trade for me despite being profitable because I did not observe the situation closely enough before entering. The spreads were wider than I prefer and the movements choppy. I was fortunate in that I picked up on it quickly and bid at a low price that was almost instantly hit, but the situation could have gotten ugly fast. What is worse is that because of the spreads I could have been forced to stop out of a winning position. For me this underlines the need for more situational awareness prior to entering trades on the long or short side.
The reason I consider this my “good” trade of the day is simply because if I had not been watching SFD for the entire day I would likely not have picked up in the change of character in the tape and missed this move. As it was, I noticed the buying pressure ease, and expected a move out of the continuation pattern. Watching the tape closely for this ticker even allowed me to short some of the bull flags you can see in this chart for a couple of pennies. As it is, this speaks to the success that can be attained by simply focusing on a few tickers and really getting to know the tape.